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Intangible Assests and Market Value: Evidence from Biotechnology Firms

Author

Listed:
  • Lionel Nesta

    () (SPRU, University of Sussex)

  • Pier-Paolo Saviotti

    (Institut National de la Recherche Agronomique, University Pierre Mend├Ęs)

Abstract

We examine the relationship between the characteristics of the firms' knowledge base in terms of knowledge capital and knowledge integration and the stock market value of 99 firms active in biotechnology during the nineties. Panel data regression models show that our measure of knowledge integration better explains the variance of a firm's market value than the more conventional variable of knowledge capital. This econometric relationship becomes stronger as the technology cycle reaches more mature phases. Meanwhile, profitable and research-intensive firms reach higher levels of market value.

Suggested Citation

  • Lionel Nesta & Pier-Paolo Saviotti, 2003. "Intangible Assests and Market Value: Evidence from Biotechnology Firms," SPRU Working Paper Series 87, SPRU - Science and Technology Policy Research, University of Sussex.
  • Handle: RePEc:sru:ssewps:87
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    File URL: http://www.sussex.ac.uk/Units/spru/publications/imprint/sewps/sewp87/sewp87.pdf
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    References listed on IDEAS

    as
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    14. Lionel Nesta & Pier Paolo Saviotti, 2005. "COHERENCE OF THE KNOWLEDGE BASE AND THE FIRM'S INNOVATIVE PERFORMANCE: EVIDENCE FROM THE U.S. PHARMACEUTICAL INDUSTRY -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 53(1), pages 123-142, March.
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    Cited by:

    1. Tietze, Frank & Granstrand, Ove & Herstatt, Cornelius, 2006. "Towards advanced Intellectual property management - Events and stages during the development. Evidence from the biotech sector," Working Papers 35, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.

    More about this item

    Keywords

    Knowledge integration; intangible assets; market value; biotechnology; GMM.;

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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